Download Castone cheat sheet, a Guide to Successful completion of project-3 and more Cheat Sheet Business Economics in PDF only on Docsity! cempetiere cobber you, re2ulhng I arge unexpected invankures in your warehouEe. Inventonse
tre paid for when you Fuld he areduct Too much unmpected invartary leeds to ze" cash with
bile et outstarcing.t tha: moment ig A amrves witha sri, pays Your Ble, ana eaves You
witha loan ard a siffrterest payment. che Urited States this events also krown as Chapter
āTrbenkrupley.)
Here ete some auidalines to help yu avoid Big AI. Your proforma Ealence Sheet pred cts your
Iirancial condition a: ne en of nS year. Meke conservatlve marketina forecasts. ā0 not ely
Upon the computars forecast. Qvovida twit a ferceast of your awn, If yau ara ooreervetvo, tis
Lnively hat your mavst expactatins wilde exosedest Naw, pul acditonal Fvenvory Deyn
ycur poccimitic oxzecttions. This forces yeur proforma Ba anc2 Sncet to rrogito future where
Jit conservative sales forecast ones tras an yea are fe ah inventeny (i yo sel te
Invantory thats wonderul) Now look ct he pretorna Balance Shoe's Cech and Imentcry
facous. Grve yo Cant yi wl ogy egies yo veto pose, Toa is, il
Iesus tock er barton 2ende until Cash equate Inventory. ni ersatas an asian! reserve to"
Ihase lines when your worst oxpeciatons ae exceed end Uisaste sre.
\werang captal can be tncugh: of ag te Tonal ānak you need 1 operat ayo-day. In
Gazatoneā¢ 11 ex.ivalen to you" Cure seis ~ Gaon, Accounts Receivable, and Inventory
De you gain expense ain mariagng your workieg expta, yo. wil cbse thet tre Cuil nes
above rake you somewhat fquid. arc ycu may wish o tghien your pclicy by āorecasiing e39
cesh and inventory. That is fine. The Letter your marceting fore2asts, te es woking Caplal you
wil qui.
1) Pay a dviderd herwoee $0.50 ane $1.9Ā¢
2) De net issue Short Term Dobt Ifyou aro chor cf each tunkos) eve stock
SAVE DECISIONS
PRACTICE ROUND 2
Decision Guidelines
1) Traoonat_twea< positoning 3 reduve ago. Reduze āelablly IMTBF) tc she mid ofthe
Low Cre customers smpectetions. Camp: increase Tasitonals Size by 01. T-adional
vill soon Jocome & -or End prod, BLK roms primarily āradiiona for ths yo
2) Low End-āno chanies, ~he Sustomeā wants an olcer oduct thal eile the sen nest
5) Hign Enc ā meraye sostioring ane āeduce age. Leave reliably (MTBF) unchanged
Example: teduse righ Erdās Size by 1.2, and irerease Porormerce by 12
44) Pertomsnen ~ canting gration (wry ds ārad onal segment. Target Peon ce o> Ge
leaing po nt hore the 2erformans> and Trasilional cece inlercecl, Reduce relabilty the
Lalla ofthe Peifanie re cistens Ā© acceplabie rangle Expl Rockies Peroni
Sizo by 1.0, anc reduce MTBF by 2.600 hows
9) Size ~ ccntinue nigrtion to T adiional segien:. Target Sze for the eading point where the
Size are Tractional erciee infereect. Reduco rel. abity te the boiler" Iho Size customer e
aeceplable range. Exerple: Increase Size's Periormance by 1.0, and decrease MTSF by
ā2w00 ours.
8) New Iigh Cra Product ~ Laurch e new Ligh Crd product, with a project lerath of 20 t 23
months in later than seco nber of asst year.) Exagle: Ro2lace te Te NAIM he Ist
positioned at eading edge of High End seqnent, sey Performance 12.0, Size 3.0 Middle of
Ins acceptable High Ed reiabilty: UTEF 23,006
Make corain tha: tho proicets fr old ereduc's ccaplte during the ycer before Docomter 31
Under tre ruas, a naw projet cen anly bacin ov Jancary ts. I trese pr-jec's co rat complete
botors the end ofthis voor, we cannct begin fallow us projcots no year
MARKETING
1) Tractionat irerease promotion and calos budgets, Hold prco, Forecactsaloe ae fal item lest
year Faamale atice #7850, prank cudgel $2000, sles Midge! $2200, and sales
forecast 1900,
2) Low End āhold pric, ierease promotion and sales buriget Forecast modest ui sales
āgrovnh trom ast yaar. Exanpe: $22.0, promotion aucget SZ0UU.ssi9s budcot $2200 and